E4-38. Reconciling Changes in Balance Sheet Accounts

The following table presents selected items from the 2017 and 2016 balance sheets and 2017 income statement of Walgreens Boots Alliance, Inc.

a. Compute the cash paid for merchandise inventories in 2017. Assume that trade accounts

payable is only for merchandise purchases.

b. Compute the net cost of property acquired in 2017.

c. Compute the cash dividends paid in 2017.

WALGREENS BOOTS ALLIANCE, INC. ($ millions) Selected Balance Sheet Data Selected Income Statement Data 2017 2016 2017 $ 8,899 $ 8,956 Cost of merchandise sold. ...... Depreciation expense. ......... $89,052 1,545 Inventories .................. Property and equipment, less accumulated depreciation...... Trade accounts payable ......... Retained earnings .......... 13,642 12,484 30,137 14,335 11,000 27,684 Net earnings ....... 4,078